BTW, a lot of what he writes is covered in a recent presentation he did: http://www.justin.tv/c3oorg/b/272030715
The New Funding Landscape
31–40 of 57 posts
Re: The New Funding Landscape
#32> So if some of the super-angels were looking for companies that could get acquired quickly, that would explain why they'd care about valuations. But why would they be looking for those? Because depending on the meaning of "quickly," it could actually be very profitable. A company that gets acquired for 30 million is a failure to a VC, but it could be a 10x return for an angel, and moreover, a quick 10x return. Rate…
That's assuming every single one of your investments gets 10x. Any kind of very naive exponential assumptions are going to look silly quite quickly. Besides other people would be willing to take on those investments even if they are too small for these incredibly lucky super angels.
Re: The New Funding Landscape
#33There's a startup idea in here. It sounds like super angels can be given a pitch and make a decision quickly. So, why not provide a website that can coordinate these pitches. Hell, maybe some angels would be willing to invest some small amount of money by just doing a live pitch over the web. Whatever the minimal barrier to closing a deal is, a startup should come along and automate to make it as fast and painless as…
AngelList (http://angel.co/) is innovating a lot in this arena.
Re: The New Funding Landscape
#34Ok. Negative points for my last comment justified. Here is my dilemma: Our company has created an online application we call "Supertrainer." The reason we named it "Supertrainer" is because we are providing personal trainers with tools that allow them to separate themselves from all other personal trainers out there. There is a tangible and measurable difference between the average personal trainer and the "Supertrai…
"Perception" is very important in communication and communication is very important in who I am.
I think the perception is that I am completely refuting the idea of a super-angel, which I am not.
I am merely commenting on the perception created when attaching the word "super" to the word "angel" in the process of appealing towards people who are looking for money. There are no doubt differences between angels, super-angels and venture capitalists; the question was the use of the word "super" in its communication and if it is really justified in illustrating the advantages that the word "super" suggests.
Obviously, discussion in this aspect of the "Super Angel" is not something that is welcomed here.
Anyways, what I have learned about this forum from this is:
"Don't bite the hand that feeds."
Re: The New Funding Landscape
#35This recent discussion of angels vs. VCs is just like the debate of hedge funds vs. proprietary trading firms. What's happened in New York (and Chicago) is that they've gone after after completely different strategies.
Hedge funds have a lot of investor capital and must hold positions overnight, so they concentrate on portfolio construction. Prop shops don't have a lot of capital, so they can dabble in high-frequency trading where the concern is taking single positions as fast as possible, and often earning rebates from the exchange to provide liquidity.
Having worked for both types of firms, I can say that "quant trading" is a pretty broad term. I suspect "investing in start-ups" will come to mean different things. (PG hints at acquisitions vs. IPOs as a differentiating investing goal.)
Re: The New Funding Landscape
#36There's a startup idea in here. It sounds like super angels can be given a pitch and make a decision quickly. So, why not provide a website that can coordinate these pitches. Hell, maybe some angels would be willing to invest some small amount of money by just doing a live pitch over the web. Whatever the minimal barrier to closing a deal is, a startup should come along and automate to make it as fast and painless as…
AngelList ( http://angel.co/ ) is innovating a lot in this arena.
Welp, there ya go. Wish this was around about 18 months ago :)
Re: The New Funding Landscape
#37Ok. Negative points for my last comment justified. Here is my dilemma: Our company has created an online application we call "Supertrainer." The reason we named it "Supertrainer" is because we are providing personal trainers with tools that allow them to separate themselves from all other personal trainers out there. There is a tangible and measurable difference between the average personal trainer and the "Supertrai…
It certainly isn't the amount of money they're investing It actually partly is, super angels (as discussed in the essay) are investing more money than angels, but there is another distinction (mentioned in the essay) they are investing other people's money. Somewhat paraphrased summary from the essay on the definition of super angels: super angels are VC's who invest less but act more like angels.
I think the definition is based on Super Angels investing other people's money (usually alongside their own money).
VCs - investing other people's money (endowments, etc) Angels - investing their own money Super Angels - investing their own money and other people's money
Re: The New Funding Landscape
#38Angel investing is kind of a fad right now. Everyone's doing it. My gut instinct is that it's at least a mini bubble. In 3-5 years a lot of angels are going to be unhappy about negative returns, the stock market is going to be looking stronger, and they'll shift their money back to stocks and bonds. Surely this huge influx of angel investors has contributed to the much higher valuations early stage startups have been…
At YC at least it's not mainly new angels who are driving up valuations. The investors in the last YC batch were pretty much the usual suspects. And this was especially true of the earliest investors in each startup. New angels usually aren't confident enough to move fast; they tend to straggle in at the end of the round.
Re: The New Funding Landscape
#39There's a startup idea in here. It sounds like super angels can be given a pitch and make a decision quickly. So, why not provide a website that can coordinate these pitches. Hell, maybe some angels would be willing to invest some small amount of money by just doing a live pitch over the web. Whatever the minimal barrier to closing a deal is, a startup should come along and automate to make it as fast and painless as…
AngelList ( http://angel.co/ ) is innovating a lot in this arena.
2nd on this one. Great model.
Re: The New Funding Landscape
#40Ok. Negative points for my last comment justified. Here is my dilemma: Our company has created an online application we call "Supertrainer." The reason we named it "Supertrainer" is because we are providing personal trainers with tools that allow them to separate themselves from all other personal trainers out there. There is a tangible and measurable difference between the average personal trainer and the "Supertrai…
I don't normally downvote or harsh on comments because there are plenty of other people around here doing that, but in this case I'm going to apply the golden rule and give you some brutally honest feedback that I wish someone would give me if I were digging myself into a hole the way you are doing: > I challenge the name. If, as you say, you are trying to start a company then you should have twenty thousand more imp…
>> Or even "angels"?
...Wait a minute, they're NOT supernatural beings?
That awesome observation made me laugh out loud :)